QUESTION 1 We use the average inventory to measure the inventory level because different items have different inventory levels, so that we have to find an average of them the inventory ordering cost varies with the inventory level, so an average is needed the actual inventory level changes day by day, so we need the average to represent the inventory level O the inventory holding cost increase with the inventory level, so an average is needed QUESTION 2 The value of average inventory is half of the order quantity, i.e. half of number of units in an order. True False